When Lyndon Johnson was pushing through Medicare, he told his congressional allys to avoid getting into cost projection debates. He knew it would be pricy but thought the money would be found. He was right. Is President Obama doing the same?
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By THE ASSOCIATED PRESS
Published: September 9, 2009
Filed at 11:07 p.m. ET
More Politics NewsWASHINGTON (AP) -- President Barack Obama used only-in-Washington accounting Wednesday when he promised to overhaul the nation's health care system without adding ''one dime'' to the deficit. By conventional arithmetic, Democratic plans would drive up the deficit by billions of dollars.
The president's speech to Congress contained a variety of oversimplifications and omissions in laying out what he wants to do about health insurance.
House Democrats offered a bill that the Congressional Budget Office said would add $220 billion to the deficit over 10 years. But Democrats and Obama administration officials claimed the bill actually was deficit-neutral. They said they simply didn't have to count $245 billion of it -- the cost of adjusting Medicare reimbursement rates so physicians don't face big annual pay cuts.
Their reasoning was that they already had decided to exempt this ''doc fix'' from congressional rules that require new programs to be paid for. In other words, it doesn't have to be paid for because they decided it doesn't have to be paid for.
FACT CHECK: Obama Uses Iffy Math on Deficit Pledge